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Presented by,

Anisha Vergese Manisha Thigale Nisha Yelpale Parag Lavangare

Rural India & The Worthiness

Rural market is large, also it is less tapped.

74% population of India reside in village

Increased influence of cable and satellite TV channels Overall exposure to TV in India: 50.6% (39.4% of Rural & 79.8%

Urban India) roads

2,09,360 villages (33%) are connected by Pucca or all-weather Growing purchasing power in rural:
1. 2. 3.

Lower cost of living Absence of taxes Growing number of working members in rural families

Pharma & Healthcare In rural

18% of pharma sales from rural areas

Per capita drug expenditure in India: Rs. 151

In rural: Rs. 39 per person Total domestic pharma sales: Rs.15, 534 Crore Rural contribution: Rs. 2871 Crore i.e. 18% (ORG-MARG figures) MNC Major Glaxo Smithkline Beecham (GSK) derives more than

24% of sales from rural

Cipla, Ranbaxy , Nicholas: rural contribution is 17-19 %

Pharma & Healthcare In rural

20% hospital beds are in Rural areas 12.76 doctors per hundred thousand of the rural population (All

India average of 50)

Rural markets dominated by traditional segments like anti-

infective and alimentary drugs showing a faster pace of growth than the urban areas
Main competition: Alternative medicines and spurious drugs

Rural Market Characteristics

Large and Scattered market
Major income from agriculture Low standard of living

Traditional Outlook
Diverse socio-economic backwardness Infrastructure Facilities

Problems in the Booming Rural Marketing

Underdeveloped People and Underdeveloped Markets Lack of Proper Physical Communication Facilities Media for Rural Communication

Many Languages and Dialects

Dispersed Market Low Per Capita Income & low purchasing power

Low Levels of Literacy

Prevalence of spurious brands and seasonal demand Different way of thinking

Amrutanjan : Leader in the pain balm category in

Hurdles In Rural Market:

10gm bottle wasnt preferred 2. Hence low volume of sales


The success of the leader

1. Awareness

Extensive mapping exercise Amrutanjan Rural Van Promotion Films depicting the benefits of the product Free sample distribution Local opinion leaders Mobile stalls

2. Acceptability

Repackaging the product Use of small plastic containers which were then put into color sachets Convenient package First company to introduce pain balm in sachets

3. Affordability

Price: Rs 2 Value for Money

Experience of Marketers In Rural

1. Markets:

States with better infrastructure are preferred States with considerably higher population density than the all India average of 324 are better bets States having higher literacy rates

2. Product: Must suit the needs & lifestyle of the rural consumers
Strategies: Utility oriented products

Avoiding sophisticated packaging

Application of value engineering Small unit packaging

3. Price: Due to limited resources, price sensitive by nature

Strategies: Large volume-low price Overall efficiency & passing on benefits to customers Low cost & value for money products

4. Place:
Strategies: Segmentation Coverage of villages with minimum population of 1500-2000 Distribution upto feeder markets/Mandi towns Direct contact with rural retailers

5. Promotion: Always create a challenge in rural because

villages have thin population density & are widely spread over large remote areas

Television, Radio, Print media, Cinema Hoardings/ Wall paintings Meeting rural doctors through rural penetration campaigns Specially organized meetings for registered medical practitioners Chemist awareness programs Contract sales force

Marketing strategy for Sanjiva

Free sample distribution

Promotions at weekly bazaars, haats, melas and village squares

Hoardings/ Wall paintings Chemist awareness programs Contract sales force

Key opinion leaders

Meeting rural doctors through rural penetration campaigns Short films depicting the benefits of products Street plays and Mobile vans

Strong distribution network Timely supply

Small SKUs Avoiding sophisticated packaging and offering convenient packaging Value for money product

Changing consumer attitude towards branded products